For years, freight brokers sued over a crash had a powerful first move: argue that federal law preempts negligence claims against them, and get the case dismissed before a jury ever heard it. In May, a unanimous Supreme Court took that move away. Two months later, a Dallas County jury returned a $604 million verdict against C.H. Robinson — the first mega-verdict of the new era.
Montgomery: nine justices, one answer
On May 14, the Supreme Court decided Montgomery v. Caribe Transport II, holding 9-0 that state-law claims accusing a broker of negligently selecting an unsafe motor carrier are not preempted by the F4A — they fall under the statute's safety exception, which preserves state authority over motor vehicle safety. The ruling resolved a circuit split that had let the same lawsuit live in one federal circuit and die in another. Now the rule is national: negligent-selection claims against brokers go to juries.
Then came Dallas
The underlying crash happened on March 25, 2021, on Interstate 20 in Warren County, Mississippi: a tractor-trailer run by Lupus Superior — a carrier booked by C.H. Robinson — plowed into stopped traffic and set off a fiery six-vehicle pileup that killed three people and seriously injured two more. In late July, the jury in Lipe v. Lupus Superior awarded $604 million, splitting fault 45% to the driver, 32% to the carrier and 23% to C.H. Robinson directly. Jurors also found the driver acted as Robinson's 'borrowed employee' — a finding that, if it survives appeal, could shift a far larger share of the award onto the broker.
“ We strongly disagree with the verdict in Lipe v. Lupus Superior, LLC, et al. and will immediately appeal. ”
Robinson's defense is straightforward: Lupus Superior held a Satisfactory FMCSA safety rating and had hauled roughly 270 loads without incident before the crash. On the company's Q2 earnings call, CEO Dave Bozeman told analysts the case was 'decided based on emotion rather than the law' and urged Congress to set clear rules on who is accountable for carrier safety. The appeal could take years.
The brokers' counterargument
The Transportation Intermediaries Association notes the carrier's Satisfactory rating dated to 2014 and was reaffirmed as recently as this April — and argues the jury saw carrier safety data that brokers themselves cannot access. TIA petitioned FMCSA in June for a federal carrier-selection standard and a public high-risk carrier list; the agency has not adopted it.
What changes now
The preemption off-ramp is gone — broker vetting files are now trial exhibits, not internal paperwork
A Satisfactory FMCSA rating alone no longer looks like a defense; ongoing safety-data monitoring is becoming the expected standard
Contract language matters less than conduct: tracking, scheduling pressure and dispatch control can feed 'borrowed employee' exposure
Expect tighter underwriting and higher insurance costs across the brokerage market as carriers of this risk reprice it
Whether or not $604 million survives appeal, the combination of Montgomery and Dallas has already done its work: carrier selection is no longer a back-office routine. It's the decision a jury may someday read line by line.
Compliance is the new competitive edge
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